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Board’s eye view: interview with Harvey McGrath

Harvey McGrathOur Vice Chair talks about the importance of employer involvement in the Capital’s skills agenda

What makes a top business person, with a schedule crammed with commitments and demands, also make space in their diary to help shape the publicly funded services surrounding skills and employment support?

“On the face of it, there’s the obvious answer,” says Harvey McGrath, Chairman of financial investment giant Prudential, and who also wears many voluntary ‘hats’ including Chair of the London Development Agency and Vice Chair of LSEB. “Employers have a business interest in cultivating a pool of talented labour from which they can hire good staff.

“But I believe those giving their time to help influence the skills agenda in London are also motivated by a broader vision for the Capital. We recognise that across the city there is dramatic inequality, compounded by high levels of worklessness and economic inactivity.

“The cost of this – not just in financial terms, but the social consequences – is detrimental to London’s overall wellbeing and affects us all.

“For me, my fellow Board members and other employers taking an active interest in the future of London’s skills, we believe education, workplace training and employability are key routes to tackling these crucial social issues.”

Good progress for LSEB

Created to give greater emphasis to employer workforce needs LSEB has, since publishing its first strategy in 2008, consistently encouraged public sector provision to align more closely with business expectations for skills development services. The organisation also stresses the benefits of more cooperative working between delivery partners.

Harvey adds: “I think we are seeing more joint action and willingness from the main skills and employment service organisations as they respond to the principal aims of the LSEB’s employer-led strategy. We are also making progress in bringing other interested parties to the London skills table, such as local authorities.

“When the mix is right, results are promising. For example, The London Employer Accord brings together funding and services from Jobcentre Plus, the London Development Agency and the Learning and Skills Council. Together they are offering employers an integrated recruitment service to help them find new staff.

“Many of these employees have disadvantaged backgrounds, but with Accord support they get the skills training they need. By March 2009, the Accord helped 500 Londoners into work.

“We don’t dispute we have further headway to make, especially in translating our strategy into tangible, significant change. Present employment rates for those with qualifications below Level 2 are only 65 per cent, and for those without qualifications the figure is just 45 per cent.

“Despite the good progress made during LSEB’s first year, these statistics highlight the scale of challenge we face. But speaking to practitioners, they agree there’s now a more coordinated approach to tackling skills issues in London, a positive signal of our growing effectiveness and potential impact.”

Reacting to recession

The credit crunch was a major curve ball for everyone in 2008. Directed by the London Mayor, who chairs LSEB, the Board plays an instrumental role, working with partner organisations to offer increased support as businesses and Londoners weather the effects of the sharp economic downturn.

Harvey comments: “With jobless figures recently rising, we are working with our partners to provide extra services to help minimise the number of newly jobless falling into long-term unemployment. Short-term training and retraining can help people back to work more quickly, and all the main partner agencies we work with are responding well to fill this need.

“At the same time we must not lose sight of the persistent and long-lasting worklessness that exists even during economically buoyant times. People that are hardest to reach need radical assistance, demanding the coordinated support of many agencies working together. The Mayor and his team, including LSEB, are aware that working to alleviate the effects of this pernicious inequality is a considerable task for all organisations involved.”

Change ahead

“2010 will see some shifts in the institutional and policy landscape for skills,” says Harvey. “The replacement of the Learning and Skills Council with the Skills Funding Agency is one certain change. A general election also opens the possibility of a new central government administration.

“Added to this, many employers find the labyrinth network of skills services perplexing. It is an institutional landscape that, while dynamic, is often overwhelming with its multiplicity of service propositions.”

Harvey is clear about the purpose LSEB serves. “The board seeks to bring clarity to the London skills scene in a way that benefits both organisations and individuals. We seek a simpler, integrated offer that works to address specific skills issues facing London.

“While the infrastructure for delivery may alter, LSEB offers a high-level, long-term vision of the objectives for skills and training in London, giving a consistent approach to tackling these aims over time. This I believe is the real value that LSEB offers and why I think it’s important to be involved.”

Be part of an employer-led skills movement

There are up to 25 Board members recruited to LSEB at any one time, with leading employers that includes household name companies such as Travelodge and BT.

Harvey is positive about getting more employers involved. “Within the workplace we urge all businesses and organisations to review how they can increase the skill levels of their employees. There is a lot of public sector support on offer, and one of LSEB’s primary aims is to make access to that provision easier to tap into.

“We also encourage those who feel they want to be part of influencing policy to make contact and to look for ways to work with us.

“Responsible employers think and act for results that go beyond the near-term. If you want a better London, one that is not only productive and competitive but also socially better balanced and cohesive, influencing the direction of publicly funded education and skills support is a worthwhile use of your time and business knowledge.”